Master this deck with 48 terms through effective study methods.
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Fitness for consumption; how well a product meets customer needs.
How well product features match customer requirements.
Meeting design specifications.
Organization-wide commitment to continuous quality improvement.
Costs to prevent defects.
Costs of inspecting and testing products.
Defects found before delivery to customer.
Defects found after delivery.
Plan, Do, Check, Act method for continuous improvement.
Method focused on reducing variation and defects (3.4 defects per million).
Define, Measure, Analyze, Improve, Control improvement process in Six Sigma.
80/20 rule; small causes create most problems.
Tool used to identify root causes of problems.
Statistical tool to monitor process variation over time.
Basic inputs used to produce goods.
Inventory currently being produced.
Completed products ready for sale.
Maintenance, repair, and operating supplies.
Regular inventory ordered repeatedly to meet demand.
Inventory built in advance of peak demand.
Extra inventory to protect against uncertainty.
Inventory purchased to avoid future price increases.
Inventory moving between locations.
Number of times inventory is sold and replaced per year (COGS ÷ Avg Inventory).
Number of days inventory will last (Inventory ÷ Daily Demand).
Ordering cost plus carrying cost.
Order quantity that minimizes total acquisition cost.
Inventory level that triggers a new order (Demand × Lead Time).
SS = z × standard deviation of demand during lead time.
Demand variation increases upstream in the supply chain.
Philosophy focused on eliminating waste and improving flow.
Producing more than needed.
Idle time due to delays.
Unnecessary movement of materials.
Doing more work than customer requires.
Excess stock sitting unused.
Unnecessary movement by workers.
Products requiring rework or scrap.
Production based on forecasted demand.
Production based on actual demand.
Rate of production needed to meet customer demand.
Sort, Straighten, Scrub, Systematize, Standardize workplace organization system.
Mistake-proofing system.
Continuous small improvements.
Inventory reduction formula when changing number of warehouse locations.
Probability of not having a stockout.
Running out of inventory when needed.
Inventory constantly monitored; reorder when ROP is reached.